Well, yes and no. Correct, swapping back and forth is not simply done. And businesses don't easily move in and out of any particular industry.mirni wrote:I have an issue with regard to the often referred to balance. In a real market, there's not balance across different market segments. You can't expect drugs to be balanced with cars to be balanced with clothes. Some sectors are capital intensive, some are price sensitive, some are rapidly expanding. Each company does what they know best and not what might bring the most money. In real life, it's really rare that a company jumps from one sector to another just because it's more profitable. And it usually ends up miserably, as they are not experts in the new field.
However, supply & demand do have a big effect. If you have a demand for say, candy, and no one makes it, it's safe to say that hopping in that business would be profitable. Here's that's not so much true, as gas will always beat candy no matter how many people go into it.
By contrast, over on the Kapi-Regnum side of things (which was developed more recently, I should point out) there does appear to be some supply/demand reactiveness. And apparently, it's enough that some of the more profitable products can swap places.